Sustainability Report2018
RKW
GRO
UP | SU
STAIN
ABILITY
REPORT 2018
WHEN EXCELLENCEMATTERS
rkw-group.com
Imprint
Published byRKW SENachtweideweg 1–767227 Frankenthal, Germanyrkw-group.com
Questions related to sustainability at RKWDr. Thomas Grö[email protected] T +49-(0) 62 33-87 09-144
Dr. Lutz [email protected] +49-(0) 25 62-710-250
Lea [email protected] +46-(0) 722 33 15 79
EditorSabine [email protected]
DesignSMACK Communications GmbH, Berlin smack-communications.com
Printingprintjob24.de GmbH, Berlinprintjob24.de
Image creditsp. 52: illustration courtesy of Industrievereinigung Kunststoffverpackungen e.V., IKpp. 8, 18, 22, 36, 42, 50, 58: portraits by Stefan Hoening landscape images:p. 4: photo by Jay Mantri on Unsplash/p. 18: photo by Kea Mowat on Unsplash p. 22: photo by Henry Be on Unsplash/p. 36: photo by Aleks Dahlberg on Unsplash p. 42: photo by Daniel Beilinson on Unsplash/p. 50: photo by Tomoko Uji on Unsplash p. 58: photo by Ishan Seefromthesky on UnsplashAll other images are property of RKW.
Further informationThis is the second RKW Sustainability Report. The status of the content, of all figures and charts, is end of 2019. The RKW Sustainability Report will be regularly updated in future.
The information in the RKW Sustainability Report has been carefully compiled and reviewed. However, we cannot accept liability for potential errors or incompleteness.
The RKW Sustainability Report is printed on 100% recycled paper.
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WHEN EXCELLENCE MATTERS
1.0 Word of the RKW Management Board
1.0 Committed to the advancement
of a circular economy ............................................... 5
2.0 RKW Group: Who We Are
2.1 Corporate Profile ...................................................... 9
2.2 Core Values ........................................................... 10
2.3 Corporate Structure ............................................... 11
2.4 Markets, Products, Applications ............................. 12
2.5 Locations ............................................................... 14
3.0 Sustainability at RKW
3.1 RKW’s Three Dimensions of Sustainability ............... 19
3.2 Code of Conduct ................................................... 20
3.3 Management Systems and Corporate Policy ........... 21
3.4 Ecology
3.4.1 Energy .......................................................... 23
3.4.2 Water ........................................................... 26
3.4.3 Products ........................................................28
3.4.4 Recycling ......................................................32
3.4.5 Ecobalance ...................................................35
3.5 Economy
3.5.1 Company Key Figures .....................................37
3.5.2 Key Facts ...................................................... 38
3.5.3 Reliability ...................................................... 40
3.6 Social Responsibility
3.6.1 Safety .......................................................... 43
3.6.2 Corporate Social Responsibility ..................... 46
4.0 RKW Initiatives
4.1 Zero Pellet Loss ...................................................... 51
4.2 Investments in Carbon Footprint Reduction ............ 53
4.3 RKW Sustainability Award ...................................... 56
4.4 Membership in Organizations and Associations ...... 57
5.0 GRI Reference ..................................................... 59
Index
3RKW GROUP | SUSTAINABILITY REPORT 2018
Exec
utiv
e M
anag
emen
t Bo
ard:
Har
ald
Bied
erbi
ck (C
EO)
and
Rein
hold
Fra
nke
4
WHEN EXCELLENCE MATTERS
Committed to the advancement of a circular economy
At RKW, we are steadfast in
our resolve to enhance sus-
tainability. That’s why we
continually search for ways to con-
serve natural reserves, prevent waste,
and optimize processes and logistics.
We understand our obligation to help
future generations enjoy a healthy
ecosystem and have therefore made
sustainability an integral element of
our corporate business mission. Un-
der the umbrella of sustainability, we
promote a three-fold approach which
includes ecology, economy, and social
accountability.
Our aim is to pursue the ideals of a cir-
cular economy, with the goal of mini-
mizing the use of resources, recycling
and reusing supplies, and generating
the least possible amounts of waste
and emissions. Accordingly, RKW has
initiated a Group-wide program to
increase the use of recycled and bio-
based materials, which has shown a
promising initial outcome. Further ac-
tions resulted in our development of
several eco-friendly products, such as
biodegradable waste bags and 100%
recyclable packaging.
To reduce the environmental impact
of our products, we have also made
significant improvements with down-
gauging. This is the reduction of film
thickness while retaining or even im-
proving functionality. The secondary
effects of downgauging include lower
weight, less energy needs, savings on
transport, and hence a smaller carbon
footprint. Decreasing scrap rates and
recycling of scrap are also of great
importance, which is why every RKW
Site operates its own recycling facil-
ities where waste is converted into
high-quality, reusable resin. In addition,
we have implemented the “Zero Pellet
Loss” initiative to minimize pellet loss
across the process chain.
RKW is, moreover, active in driving sus-
tainability efforts across the industry. To
that end we are a member of a variety
of organizations concerned with sus-
tainability, including CEFLEX, EDANA,
and APE Europe. ERDE (organization for
recycling of crop plastics in Germany),
of which we are a founding member,
has made a voluntary commitment to
collect and recycle 65% of all silage
and stretch films sold on the German
market by 2022. In 2018 ERDE collect-
ed agricultural plastic waste amounting
to 13,433 metric tons, which resulted
in greenhouse gas emissions reduction
of 19,486 metric tons.
At the same time, high economic per-
formance and social responsibility play
a major role in achieving sustainability
and are directly related to our aim of
protecting the environment. RKW be-
lieves in investing profits back into the
company and in the creation and pres-
ervation of jobs. We value the health
and safety of our people and carry out
projects to optimize working condi-
tions. In turn, these factors support our
core values of respect, quality, and reli-
ability, and foster sustainable, mutually
beneficial customer relationships and
long-term productivity.
As a leading plastic film producer, RKW
is dedicated to the promotion of a cir-
cular economy. Within these pages you
will find information detailing how we
work toward an increasingly sustain-
able tomorrow.
Best regards,
Harald Biederbick
CEO
Reinhold Franke
Board Member
1.0 Word of the RKW Management Board
5RKW GROUP | SUSTAINABILITY REPORT 2018
“RKW is a value-based company. Respect and reliability are our core values. They show what RKW stands for, and are an essential part of our company philosophy.”
WHEN EXCELLENCE MATTERS
2.0
RKW Group: Who We Are
RKW is the market leader in
the areas of hygiene and ag-
ricultural films, films for the
beverage industry, and packaging
for powdery goods. In addition, the
company makes films and nonwo-
vens for medical applications, for the
chemical and converting industries,
as well as for the construction sec-
tor. RKW’s sustainable films enable
its customers to improve everyday
life of consumers all over the world.
In the fiscal year 2018, RKW generated
total sales of EUR 878 million. About
3,000 employees process 367,000
metric tons of plastic materials at 20
locations around the world.
True to the corporate slogan “When
excellence matters,” the company,
which was founded in 1957, offers out-
standing performance in terms of qual-
ity and service. Respect and reliability
are the core values of RKW and form
the basis of the company’s success.
The RKW Group is an independent, privately owned company headquartered in Frankenthal, Germany, and is one of the world’s foremost manufacturers of excellent film solutions.
2.1Corporate Profile
• More than 60 years of experi-
ence in R&D and production of
films and nonwovens made of
polyolefins
• State-of-the-art technology
• Processing of approx. 367,000
metric tons of PE and PP
per year
• 20 locations worldwide
• Around 3,000 employees
• Privately owned
• Sales EUR 878 million
2.0 RKW Group: Who We Are
9RKW GROUP | SUSTAINABILITY REPORT 2018
2.2Core ValuesRKW is a value-based company
O
Respect
Respect stands for mutual regard and openness. This applies both internally
and externally. We strive to earn the respect of our customers and stakeholders
day by day.
For us at RKW, respect is a virtue in itself. This means that respect is not just an
important success factor, it guides and steers us as a privately owned company.
Reliability
RKW stands for reliability. Our customers can count on the reliable delivery,
quality, and functionality of our products and services. And we keep our prom-
ises to our employees and customers. This is why reliability is the basis of our
company’s success.
Excellence
RKW’s corporate slogan “When excellence matters” emphasizes our aspiration
to consistently provide our customers with excellent products and services, and
to set standards in terms of quality and performance. Excellence is our philos-
ophy, featuring added value for customers, business partners, and employees.
Our corporate values do not only contribute to our business success, but also provide added value for our
customers, business partners, and employees.
Respect and reliability are our core values. They show what RKW stands for, and they are an essential part of
our company philosophy.
10
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2.3Corporate Structure
O
Management structure
From left: Harald Biederbick (CEO), Reinhold Franke (Executive VP)
• Group Accounting &
Finance Reporting
• Group Communications
• Group Controlling
• Group HR
• Group IT
• Group Marketing
• Group Operational Excellence
• Group Purchasing
• Group R&D/Sustainability
• Group Strategy/Projects
• Group Treasury & Legal Affairs
DIVISION
HYGIENE AND INDUSTRIAL
DIVISION
AGRICULTURE
DIVISION
PACKAGING
RKW Executive Management Board
11RKW GROUP | SUSTAINABILITY REPORT 2018
2.4Markets, Products, ApplicationsRKW manufactures films, nonwovens, and nets for various applications and industries.
Our products are used in all
sorts of day-to-day products,
from robust cement bags to
ultra-thin diapers.
RKW produces innovative solutions
for baby diapers, feminine hygiene,
and adult incontinence; films and lam-
inates for medical applications and
wound care; industrial films for lami-
nation, labels and tags, barrier func-
tions, surface protection, as well as
release films. The nonwovens offering
comprises carded, spunbond, and hy-
droentangled spunbond composites,
as well as laminates.
There is a wide variety of potential
applications for our packaging films.
RKW’s consumer packaging portfo-
lio comprises printed packaging films
and printed collation shrink films for
multipacks, FFS films for the food,
non-food, and construction industry,
and household products (e.g. bags). In
the sector of industrial packaging, we
provide FFS films for industrial goods,
converted sacks, and transport pro-
tection films.
RKW is one of the world’s leading
suppliers of films and nets for the ag-
ricultural and horticultural markets.
The comprehensive product portfolio
includes high-quality, optimized, and
sustainable solutions: silage films and
tubes, round bale films and nets, as
well as greenhouse and horticultural
films.
As declared in our business mission,
RKW is committed to reduce the car-
bon footprint of our products and
production processes.
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WHEN EXCELLENCE MATTERS
CONSUMER PACKAGINGNONWOVENS
HYGIENE AND MEDICAL INDUSTRIAL FILMS INDUSTRIAL PACKAGING
AGRICULTURAL FILMS, NETS, AND GREENHOUSE FILMS
13RKW GROUP | SUSTAINABILITY REPORT 2018
US
China
Sweden
France
Egypt
Belgium
Finland
Germany
Vietnam
GermanyFrankenthal (HQ)
Echte
Gronau
Halberstadt
Michelstadt
Nordhorn
Petersaurach
Wasserburg
BelgiumHoogstraten
Liège
ChinaGuangzhou
EgyptCairo
FinlandPori
2.5LocationsGlobal footprint for local presence
14
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US
China
Sweden
France
Egypt
Belgium
Finland
Germany
Vietnam
FranceSaint-Galmier
Saultain
Ville-le-Marclet
SwedenHelsingborg
USChester, SC
Franklin, KY
VietnamHo Chi Minh City
Knowing and understanding the specific require-
ments of local customers all around the world is
extremely important. This is why the internationally
operating company is present with 20 locations and
a large number of independent sales partners on
four continents.
RKW supplies products to numerous business part-
ners in over 80 countries. Our national and interna-
tional locations help to expand the business locally
and tap the full potential of the market.
Our local Centers of Competence foster innovation
by focusing on key technologies and on the regular
exchange of expertise within the corporation.
15RKW GROUP | SUSTAINABILITY REPORT 2018
Harald Biederbick, CEO RKW GroupRKW Business Mission
“With sustainable film solutions, we enable our customers to improve the daily life of consumers all over the world.”
WHEN EXCELLENCE MATTERS
3.0
Sustainability at RKW
Chr
istia
n Pe
reira
, RK
W M
iche
lsta
dt, P
rodu
ctio
n
18
WHEN EXCELLENCE MATTERS
Ecology Economy Social accountability
Protecting natural resources Solidly financed, privately owned company
Comprehensive company health and safety
Reducing emissions
Avoiding environmental pollution
Reinvestment of profits in the company
Work safety well above the industry standardSupporting circular economy by
increasing use of recycled materials and by designing products for easy recycling
Long-term, successful customer relationships
Optimizing working conditions
Quality and reliability as the basis of economic success
Responsibility for our clients
Reducing CO2 footprint of produc-tion, products, and supply chain
Creation and preservation of jobs
Employee training and development
3.0 Sustainability at RKW
3.1RKW’s Three Dimensions of Sustainability
As a leading film manufacturer,
RKW assumes responsibility
for a habitable environment.
Sustainability is therefore a key com-
ponent in our corporate policy and
business mission.
We live sustainability based on a
three-fold approach: ecology, econo-
my, and society. These aspects gov ern
our proactive behavior – driven by the
commitment of a responsible and suc-
cessful company.
We are convinced that environmental
protection, high economic perfor-
mance, and social accountability are
inseparably connected.
19RKW GROUP | SUSTAINABILITY REPORT 2018
3.2Code of ConductThe consistent adherence to all relevant laws and regulations is the prerequisite for sustainable business and credibility.
RKW commits itself and all its employees to observe
high ethical standards and to uphold all national and
international laws.
These include:
• Working conditions such as safety, working time,
and compensation
• Antitrust laws and fair competition
• Prevention of bribery and corruption
• Protecting and respecting copyrights, company prop-
erty, and other forms of intellectual property rights
RKW has adopted the GKV’s (General Association of the
Plastics Processing Industry) Code of Conduct along with
its corresponding certification.
This Code of Conduct clearly defines the principles and
ethical values of the company, the legal requirements, and
fair and sustainable ethical standards.
The obligation to apply the same standards is also expect-
ed from RKW’s business partners.
Compliance with antitrust and competition legislation requirements
No sharing of territories or customers with competitors
No sham offers for tenders
No discussions or agreements with competitors not to compete
No discussions or agreements with competitors about prices or conditions
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3.3Management Systems and Corporate PolicyCertified management systems and policies enable the RKW Sites and employees to reliably achieve RKW’s business objectives.
By providing a set of policies,
processes, and procedures,
management systems define
how a company manages the cor-
related areas of its business to achieve
its objectives and to fulfill potential
legal obligations.
Our Sites have implemented various
management systems and certifica-
tions according to the relevant nation-
al regulations. This includes, for exam-
ple, environmental protection, energy
management, quality management,
work safety, and health.
This is a selection of the various management system certificates of the RKW Sites
21RKW GROUP | SUSTAINABILITY REPORT 2018
Ale
xand
ra R
utko
wsk
i, RK
W M
iche
lsta
dt, A
dmin
istr
atio
n
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325,955 333,679 331,382
46,987 42,470 42,4707,522 6,891 7,581
6,601 6,299 5,884
0
100,000
200,000
300,000
400,000
2016 2017 2018
Electricity Gas Vapor/thermal energy Others
3.4.1
Since the manufacturing of films
intrinsically consumes a large
amount of energy, it is particu-
larly important for us to monitor, an-
alyze, and reduce in the best possible
way our use of electricity, gas, and
any additional energy sources.
All Sites in Germany are certified in
accordance with the international
standard DIN EN ISO 50001 for Ener-
gy Management Systems. Other Euro-
pean Sites conduct energy audits ac-
cording to the standard EN 16247. The
Sites in North America and Asia are not
yet certified, but are assessed through
data analysis systems to monitor
their performance and consumption.
In 2018, 387 GWh of energy was used
throughout the RKW Group, of which
86% was purchased as electricity and
11% as gas. Since the use of energy
Use of energy RKW Group (MWh)
3.4 Ecology
Film production is an energy-intensive industry. Utilizing continuous improvement programs, all RKW Sites steadily strive to reduce their energy consumption.
3.4.1Energy
and greenhouse gas emissions are in
most cases directly related, we have
pursued several strategies that lead to
a reduction of emissions (see also 4.1).
23RKW GROUP | SUSTAINABILITY REPORT 2018
520,
190
509,
503
507,
218
461,
864
452,
552
449,
851
0
100,000
200,000
300,000
400,000
500,000
2016 2017 2018
Output
Production, good parts
0.48
0.4
0.38
0.57
0.47
0.45
0
0.1
0.2
0.3
0.4
0.5
0.6
2016 2017 2018
Water usage per output
Water usage per good partsIn t In kg
3.4.1
The projects to increase energy efficiency are initiated and fully supported by all RKW Sites. They have set up local energy
councils that first assess and discuss inefficiencies, and then implement countermeasures. These include investments, organi-
zational changes, and process improvements. The following list shows areas in which energy savings were achieved in 2018:
• Investments in equipment upgrades and
building insulations
• Investments in modern cooling and
heating equipment
• Stop or standby of technical equipment
when not in production
• Smart illumination control in offices, warehouses,
and production areas
• Investment into new LED lighting concepts
• Replacement of inefficient switches and control
technologies within production processes
• Heat recovery from compressor units, to be
reused for heating
• Reduction/elimination of compressed air leakages
All these projects are generally orga-
nized in two ways. First, a group-wide
investment program of EUR 200,000
p.a. is available to support energy ef-
ficiency programs (see also 4.2). Fur-
thermore, our Sites set aside part of
their budgets to individually pursue
energy -saving measures.
Over the past seven years, the RKW
Group has accumulated nominal en-
ergy savings of 16.1 GWh.
• In some applications, natural gas has a better CO2 footprint than electricity, therefore we replace electricity
with gas wherever possible.
• However, the best way to reduce our carbon footprint is by reducing energy consumption as a whole.
We therefore implement projects that directly contribute to an overall reduction of use.
Percentage of total savings in 2018, overall energy savings came from these areas
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1,625
2,937
1,775
0
1,000
2,000
3,000
2016 2017 2018
Total in MWh
3.4.1
ExampleLED installation
One example of our energy-efficiency
projects from 2018 can be seen at
our Echte Site.
Here, the existing indoor lighting sys-
tems were replaced with LED lamps.
With an investment of EUR 5,000 we
were able to realize annual savings of
19 MWh.
ExampleAir leakages
An example that even small invest-
ments can be helpful is the new mea-
surement device at our Liège Site.
With an investment of only EUR 5,000
we were able to realize annual savings
of 69 MWh by reducing the use of
compressed air.
The annual energy-saving achieve-
ment shown in the chart is measured
per annum. Consequently, annual en-
ergy savings are in reality higher, since
our actions have a positive impact on
the following years, yet are difficult to
quantify.
Saving energy through energy-efficiency projects (MWh)
25RKW GROUP | SUSTAINABILITY REPORT 2018
202,741192,927
186,230
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
225,000
250,000
2016 2017 2018
3.4.2
WaterAlthough water is only an auxiliary medium for the production processes of the RKW Group, we are aware that this resource has a very high value for the regions near our Sites.
T herefore, we actively monitor
and assess water consump-
tion by using the WULCA
(Water Use in Life Cycle Assessment)
methodology. This compares con-
sumed water with available water in
a specific region. Except for the Egypt
Site, all RKW Sites observe a good
ratio of availability and consump-
tion. The annual demand for water at
RKW Sites amounts to approximately
200,000 metric tons from public net-
works. Most of it is used as cooling
water for the extrusion lines, process
aids for aggregates and products, and
as sanitary water.
During processing, leakage of addi-
tives or chemicals into water is very
rare. Therefore, water that has not
evaporated can be disposed of as
normal wastewater through the local
sewer system, without further treat-
ment or cleaning procedures. There-
fore, water usage by RKW never pol-
lutes the environment and does not
create additional problems regarding
drinking quality or use for agriculture.
Nevertheless, water conservation
makes up an important part of our
efficiency efforts, and projects to re-
duce consumption are carried out at
many Sites. From 2016 to 2018, the
amount of water needed to produce
our high-quality products was re-
duced by more than 8%.
3.4.2
Water usage of the RKW Group (m3)
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0.39 0.38 0.37
0.00
0.10
0.20
0.30
0.40
0.50
2016 2017 2018
3.4.2
Example
An example from the Gronau Site
shows that even small modifications
can save resources. During the pro-
duction of RKW HyJet® spunbonded
fabric, water is used to integrate fiber
into the nonwoven material.
This high-pressure method requires
large quantities of water. Thanks to
a change in the water recirculation
stream, demand could be significantly
reduced by more than 1,500 m³/a.
This optimization is a sustainability
initiative that seamlessly fits into our
strategy.
Water consumption all products (l/kg)
27RKW GROUP | SUSTAINABILITY REPORT 2018
Products3.4.3
RKW products portfolio comprises films and nonwovens for various appli-cations and businesses. Industrial products in general create an environmental impact that must be balanced against their usefulness and the potential effect of alternatives.
T herefore, all commercial pro-
ducers have a responsibility
to reduce the impact of their
goods while maintaining or even im-
proving their properties. All of our
products contribute to the business
mission of RKW: “With sustain-
able film solutions, we enable our
customers to improve the daily life
of consumers around the world.”
The reduction of the carbon footprint
of RKW’s core products by 25% per
m² shipped by 2020 has even been
implemented as a strategic goal for
the whole RKW Group. The length
and width of RKW products typically
result from the size of our customers’
products, while the properties need-
ed to fulfill their purposes determine
their thickness. Reducing film thick-
ness while keeping or even improving
film attributes is therefore one key
goal in the development of nearly all
product groups. This process is called
downgauging. The advantage of
downgauging for several exemplary
RKW products are depicted on pages
30 and 31. Those shown have been
in use for the same purpose for years.
Therefore, their requirements have
remained the same or become even
more stringent. Nevertheless, down-
gauging by our R&D teams resulted
in significant reductions of film thick-
nesses.
There are various ways to achieve
downgauging success. This includes
investments in new machinery and
in-house development of crucial
components and control systems.
Intensive operator training results in
higher quality awareness and shorter
feedback cycles. Finally, raw materi-
al improvements lead to better film
properties at lower film thicknesses.
RKW is in constant and close contact
to all relevant polyolefin producers
and compounders. We also continual-
ly test and evaluate new or modified
grades. The combination of improve-
ments in three areas – men, machine,
and material – have led to the accom-
plishments seen in the chart.
The reduction of scrap rates in pro-
duction immediately improves ma-
terial and energy efficiencies. This
provides benefits both from an eco-
logical as well as an economical point
of view. RKW therefore puts huge
effort into reducing scrap rates at all
our Sites and with all our products. In
2018, ten out of 18 RKW production
Sites were able to further reduce their
overall scrap rates. Our Group-wide
Operational Excellence program aims
to accelerate and broaden this devel-
opment. Measures are specifically de-
signed to fit the needs of the individu-
al Sites and machines, and are strictly
monitored. Plastic products have a
huge potential to pollute nature af-
ter being used for their original pur-
pose. The problem of marine litter is
well known. While it is the obligation
of consumers and public authorities
to arrange for collecting and sorting
systems, it is the duty of producers to
create easily recyclable products. In
the film industry, the first prerequisite
for this is material homogeneity. RKW
therefore produces films nearly exclu-
sively based on uniform and thus recy-
clable materials. The various types of
polyethylene used at RKW blend quite
well when mixed during recovery pro-
cesses and the recycled granules can
be easily reused in a broad range of
products.
There are, however, some products
that do not allow for a collective re-
cycling process as they require the use
of diverse materials. One example is a
silage film for agricultural applications
28
WHEN EXCELLENCE MATTERS
that consists of layers made from
polyethylene and polyamide. To nev-
ertheless allow for recycling, RKW
has designed this film so that the
incompatible layers can be easily sep-
arated and then independently recy-
cled. More details regarding the in-
house recycling activities of RKW will
be given in chapter 3.4.4.
While RKW products have an impact
on the environment, they also provide
huge benefits and can therefore be
considered sustainable.
Films for agricultural applications
Films for baby diapers
RKW ProVent®: self-venting plastic bag for powdery goods
29RKW GROUP | SUSTAINABILITY REPORT 2018
45
35
3028
0
10
20
30
40
50
2010 2012 2014 2018
µm
3.4.3
Their advantages are most ob-
vious in our Hygiene Division,
where their Babycare and Fem-
care products, as well as medical
applications, directly improve the
hygiene and thereby health of hu-
mans. This is especially true for in-
fants, the ill, and the elderly; those
who are most affected by unsanitary
conditions.
Less obvious but equally advanta-
geous are the benefits provided by
plastic films from our Agricultural Di-
vision. Silage films protect animal food
from vermin and mildew for months.
The cultivation of fodder has a huge
impact on the environment and loss
due to insufficient protection would
be an enormous waste. The products
of our Packaging Division also protect
valuable goods.
Our self-venting RKW ProVent® sacks
provide packaging to safely store wa-
ter-sensitive powdery goods in humid
conditions, such as cement. These
substances are produced at very high
temperatures and undergo a costly
and energy-intense drying process.
Even a small amount of moisture
would undermine this effort.
These are only a few examples, but
they help to show that while RKW
products do have an effect on the en-
vironment, they offer huge benefits.
In addition, they play a part in reduc-
ing the much larger influence of the
products of our customers and end
users by protecting these goods. In
line with our business mission, RKW
continually works toward reducing
the impact of our products while fur-
ther improving their benefits.
Dr. Thomas Gröner, Director R&D/Sustainability RKW Group
“R&D continuously develops improved and more sus-tainable products which are creating added value for our customers and ensure profitable growth of RKW in bal-ance with our increasing environmental responsibility.”
Downgauging: example shrink film from 45 µm in 2010 to 28 µm in 2018. Our goal is for a further decrease to 25 µm.
Example
30
WHEN EXCELLENCE MATTERS
Downgauging by 40% compared to standard film results in:
More film per roll reduces storage space
Reduced transportation and thus lower CO2 emissions
Reduced energy consumption
Improved carbon footprint
Film per roll
+2,200 m/roll
Carbon footprint
–45%
24 g/m2
Film thickness
10 g/m2
Secondary effects of downgauging
In addition to enhancement of material efficiency, downgauging shows secondary effects on the environmental impact of
products. Thinner films result in less energy consumption, transportation weight, packaging material, and impact during
the subsequent production steps.
Energy
Transport
Standard film
Downgauged film
On average, reduction of 12 trucks per year
31RKW GROUP | SUSTAINABILITY REPORT 2018
Harald Biederbick, CEO RKW Group
“Both efficiency and sustainability are the key drivers for our investments. When it comes to the handling of internal scrap, we aim to maximize the share of reused materials. Therefore, we invest continuously in extend-ing our recycling capacities.”
Recycling 3.4.4
At RKW, recycling is one of the key actions we take in our aim to improve sustainability. Recycling allows for both ecological and economical gains.
I t reduces the carbon footprint of
raw materials, prevents plastic scrap
from affecting the environment, in-
creases supply efficiency, and reduces
material costs. Thus, RKW does not
regard production scrap as lost goods,
but as valuable raw material that can
and must be reused in production. We
take steps to reuse production scrap
either directly within the production
process or between different process-
es. Each RKW Site has its own recy-
cling facilities where scrap can be pro-
cessed into high-quality regran ulate.
Furthermore, the solvents necessary
are burnt in regenerative incineration
facilities so that the energy generated
can be used for heating.
While all RKW Sites implement mea-
sures to reduce scrap as part of our
Group-wide Operational Excellence
program, there will always be some
residues during production. To name
just a few sources, scrap results from
modification of formulations and col-
ors in extrusion, varying setup pro-
cesses in printing and converting, as
well as edge trimming to ensure qual-
ity. Depending on its source, scrap
can be divided into categories with
different potential usages. For exam-
ple, scrap that is transparent can be
reused in most films, while those that
are dark or printed can only be used in
similarly colored films.
As part of the ecological design of
our products (see 3.4.3), RKW R&D
teams develop formulas that allow
easy sorting and recycling from the
start. Multilayer films with incom-
patible and inseparable materials are
avoided wherever possible. Predefin-
ing and labeling the scrap category of
all products is an integral part of our
design process. This makes it easy for
operators to classify and mark scrap
left over from production. The scrap
of each class is then collected and re-
cycled into a batch of homogeneous
pellets.
RKW recycles using offline and in-
line methods. Exline recycling follows
the pattern described above: Scrap is
sorted and labeled during production
and then aggregated and recycled in
centralized recycling centers. Inline
recycling utilizes specialized, small
throughput recycling extruders that
are directly attached to the produc-
tion machinery. They absorb edge-
trim stripes, regenerate them into pel-
lets, and directly feed these back into
the production process.
32
WHEN EXCELLENCE MATTERS
This allows for the smallest loop possi-
ble to reuse scrap in production. How-
ever, this process can only be utilized
with certain products.
RKW assesses the processes of both
forms of recycling for product suit-
ability and accordingly invests in the
recycling technologies. In 2017 sev-
eral new recycling lines were put into
operation. These include new inline
recycling lines at various Sites of the
Division Hygiene & Industrial, the ex-
tension of existing recycling facilities,
as well as one completely new recy-
cling center. This has increased the
amount of material we can recycle
and allows for the recycling of more
special materials.
Not all types of scrap and recycled pel-
lets can be reused. Reuse at the Site
of origin is sometimes prohibited due
to legal or customer requirements;
quality, color, and formula concerns;
or missing links between the available
recycling technology and qualities
needed. In these cases, RKW bene-
fits from its status as a Group and the
close collaboration of our Sites. Scrap
definitions are common to all Sites,
which allows for an intercompany
scrap and/or regeneration business.
This results in the most ecological and
economical reuse of all types of scrap.
In case of logistical problems, this sys-
tem is complemented by the use of lo-
cal recycling companies and purchase
of scrap.
While all Divisions of RKW use recy-
cled scrap, the Division Agriculture
and special products of the Division
Packaging excel in the usage of regen-
erated material. The Agriculture Sites
reuse all of their scrap and buy huge
amounts of post-industrial scrap from
other production and trading com-
panies. In addition, they are mem-
bers of the German initiative ERDE
that organizes the collection, sorting,
cleaning, recycling, and reuse of huge
amounts of used agricultural films. In
2018 around 14,000 metric tons of
films could be collected via more than
1,200 collection points and mobile
collections. This has resulted in very
high proportions of recycled materials
in the film products of these Sites.
Another example of products with
high contents of recycled raw materi-
als are our industrial disposal bags. In
these products, virgin material is only
used as part of a master batch to cre-
ate the distinctive blue color. The rest
consists of recycled material, which
exceeds 97% in total.
In 2018, the German Association for
Plastics Packaging and Films (IK Indus-
trievereinigung Kunststoffverpack-
ungen e. V.) published ambitious sus-
tainability targets to strengthen the
circular economy:
• At least 90% of household packag-
ing is to be recyclable or reusable by
2025
• At least one million metric tons of
recycling material (or renewable raw
materials) is used in the production
of plastics packaging in Germany by
2025
As a member of the IK, RKW imple-
mented the Group-wide strategic
goal to increase the use of recycled
and renewable materials from 7.6%
in 2017 to 11% by the end of 2020.
Additionally, RKW is a member of
the collaborative initiative CEFLEX, a
European consortium of companies
and associations representing the
entire value chain. Since 2017, RKW
has played an active role in differ-
ent workstreams, such as developing
guidelines for flexible packaging in a
circular economy (D4ACE), and identi-
fying and developing sustainable end
markets for recycled materials.
33RKW GROUP | SUSTAINABILITY REPORT 2018
Example
At RKW ACE, new state-of-the-art recycling equipment has decreased regener-
ation costs by more than 25%, and significantly reduced CO2 emissions, energy
outlays, and water use.
34
WHEN EXCELLENCE MATTERS
Ecobalance3.4.5
The most comprehensive way to measure the environmental performance of a company is to calculate the ecological footprint of its products while considering all contributing factors.
At RKW, we are working to
fully assess all of our core
products and to track the de-
velopment of their demand on nature.
To ensure successful growth, we focus
on our core products with the aim of
achieving market leadership and in-
creasing business volume. All current
and future investments will therefore
be made to improve the ecobalance
of these products.
The factors that impact our calcula-
tions have to do with improvements
in material and energy efficiency.
These can be increased by down-
gauging films and thereby providing
the same functionality with less ma-
terial. They can also be improved by
reducing scrap rates and recycling
scrap, thus utilizing lower quantities
of raw material for the same amount
of goods produced. The same is true
for the reduction of customer claims
(see 3.5.3). Investments in machinery
and infrastructure as well as process
optimizations lead to improvements
in energy efficiency. The most rele-
vant form of energy for RKW is elec-
tricity, but oil and gas for heating and
processes as well as water consump-
tion also have their effects. However,
RKW is additionally working on more
plastics-specific measures to improve
our ecobalance.
Today, thermoplastics almost exclu-
sively consist of raw fossil materials
such as oil and gas. A cradle-to-grave
analysis of these materials leads to the
obvious conclusion that they result in
CO2 emissions, which contribute to
global warming. However, in recent
years materials have become available
that are either based on renewable
sources (so called bio-based materials)
or can be biologically degraded (bio-
degradable materials). RKW has test-
ed both and we are actively promot-
ing them to our customers. In 2017,
these materials emerged to market
maturity. Their production is almost
identical to those of fossil origin and
match their film properties. More
than 800 metric tons of bio-based
materials were produced at RKW Sites
in 2018. These include FFS bags that
require high strength and low creep
properties. In the same year, a num-
ber of biodegradable products were
launched, including star-sealed tie
handle biodegradable waste bags.
Biodegradable star-sealed bag for organic household waste in Germany. Certified as fully compostable by DIN Certco, it is also the first T-shirt star-sealed bag available on the market made of more than 50% renewable materials. It mainly consists of starch and polylactic acid (PLA), and other biodegradable components.
35RKW GROUP | SUSTAINABILITY REPORT 2018
Faru
k Pü
skül
lü, R
KW
Mic
hels
tadt
, Pro
duct
ion
36
WHEN EXCELLENCE MATTERS
3.5.1
31%
5%
18%19%
12%
15%Hygiene & Medical
Nonwovens
Industrial Films Consumer Packaging
Industrial Packaging
Agricultural Films & Nets
EUR 878 Mio
3.5.1
125
486
680
860
940 953902 905
878
84
277307
370420 405
380 378 367
1998 2003 2008 2013 2014 2015 2016* 2017 2018
in EUR million in thousand metric tons
* Consolidation of Sites in 2015/2016: sale of Site Westborough (US), and closure of the Sites Werra (Germany) and Iter (Spain).
3.5 Economy
3.5.1Company Key Figures
Markets and products
Sales and tonnage
37RKW GROUP | SUSTAINABILITY REPORT 2018
Key Facts3.5.2
years of experience
locations
people
60+
20
3,000
in the research, development, and production of polyolefin
films set RKW apart. In 1957, Jakob Müller founded Rheinische
Kunststoffwerke GmbH in Worms, Germany. The company has
been expanding internationally since the 1960s. Since the end
of the 1990s, RKW has grown through acquisitions in the USA,
Vietnam, etc.
of the RKW Group, including our headquarters in
Frankenthal, are found in Germany, Belgium, Finland,
France, Sweden, USA, Egypt, Vietnam, and China.
work for the RKW Group around the world.
38
WHEN EXCELLENCE MATTERS
metric tons of PE and PP
million sales
percent
367,000
EUR 878
100
(polyethylene and polypropylene) are processed annually
by our teams with advanced machines and technologies
into films, nonwovens, and nets.
were generated in 2018.
privately owned. The owners of RKW do not just promote
the global growth of RKW, but also a strong and reliable
corporate culture.
39RKW GROUP | SUSTAINABILITY REPORT 2018
82 81
89
82
63
85 84
88
85
83
86
89 88
72
89
86
91
89 89
83
80
92 91
69
92
85
92
90 91
85
90
96
90
75
91
89
93 93
8686 85
95
88
77
92
89
94
90
880
20
40
60
80
100
2015 2016 2017 2018 2019
3.5.3
ReliabilityOne of the core values of RKW is reliability, as it relates to our interactions with customers, employees, and stakeholders.
3.5.3
We are committed to always
deliver what we prom-
ised to our customers:
products in the quality and time we
agreed upon. RKW stands for excel-
lent product performance. We ensure
the quality of our products through a
transparent and precise development
process, systematic qualification, pre-
cise order definitions, well-maintained
machinery, and strict quality controls.
Proactive production planning and
internal logistics ensure the in-time
delivery of products to our customers.
RKW aims to further improve these
aspects of reliability. Therefore, we
have set strategic goals for improving
both quality and scheduling as part of
our strategy to become an even more
reliable business partner.
To assess customer satisfaction, we
ask them several questions covering
all aspects of the supplier-customer
relationship. These include inquiries
regarding quality and usability of
products, lead times, and logistics, as
well as service and joint R&D. The data
received is then evaluated in order to
rate the Sites or compare their perfor-
mance with certain product groups
or customers. When customer satis-
faction in specific areas deteriorates
or negative assessments from single
Customer satisfaction RKW Gronau 5-year trend
40
WHEN EXCELLENCE MATTERS
customers are discovered, we identify
countermeasures or focus attention
on that topic. These evaluations are
typically performed once a year and
are executed in a structured manner
to gain information and optimize our
processes.
One simple method to gauge quality
is to measure the number of claims
according to their value per thousand
of the sales of each Site. This value is
measured not only dependent on the
reason for the claims, but also to get a
basic idea about Site performance. At
Site level the overall value is split into
product groups and root causes. Af-
ter having identified the root causes,
actions are implemented to prevent
such claims in the future. As one of
our strategic goals, we aim to contin-
uously lower the percentage of claims
at all Sites. In 2017, 14 out of 18 Sites
were able to reduce claims substan-
tially or reached less than two per
thousand of sales.
At RKW, the timing of deliveries is
measured by the KPI “OTIF.” OTIF
stands for “on time” and “in full” and
is measured as the percentage of all
deliveries. Therefore, if a delivery con-
sists of the full amount of product
and arrives at the time agreed on, this
will contribute to OTIF. In case only
one of the two aspects is fulfilled, the
delivery has not contributed to OTIF.
RKW’s goal is to reach an OTIF value
of 98% at all Sites by 2020. In 2018,
nine out of 18 production Sites al-
ready reached values exceeding 90%
and 13 Sites showed significant im-
provements. The initiatives to boost
OTIF fit quite well into the overall
strategy of our Operational Excellence
program. These include the reduction
of scrap, faster feedback cycles to en-
sure quality (in order to improve IF), as
well as an improvement of utilization
rates, line speeds, and planning pro-
cesses (in order to improve OT). The
goal, while ambitious, can be realisti-
cally attained by 2020.
All deviations from reliability are re-
solved by the same methods out-
lined in our Operational Excellence
program. We perform thorough root
cause analyses using standardized
methods. At all Sites, we have trained
specialists in various departments
who lead small teams that optimize
production lines and processes as well
as eliminate resource waste. Depend-
ing on the scope, topics, and teams,
we call these colleagues “green belts”
or “white belts.” They undergo train-
ing through an internal, standardized
program, which includes exemplary
projects that are evaluated by trainers
and peers. The Sites identify reasons
for wasted resources and evaluate
potential savings resulting from the
projects. Local steering committees,
typically led by the General Manager,
decide on the priority of the projects,
assign resources to them, and moni-
tor their progress and results. The out-
comes of these projects show a great
impact both on the satisfaction of in-
dividual customers as well as on the
reliability and profitability of RKW as
a whole.
41RKW GROUP | SUSTAINABILITY REPORT 2018
Nan
de v
an A
ken,
RK
W N
ordh
orn,
Gen
eral
Man
ager
42
WHEN EXCELLENCE MATTERS
RKW’s company values of excellence and respect mean we strive towards ZERO accidents and the well-being of our employees at work. Safety always comes first.
At RKW, we have implemented
a company-wide Operational
Excellence Program. Its un-
derlying principle is to support con-
tinuous improvement throughout the
entire Group. Safety is one area which
we intend to further optimize until we
reach a point of ZERO accidents.
One of our company’s core values is
respect, which means, among other
things, that we need to ensure our
employees’ well-being at every stage
of their working processes. In every
situation, whatever happens, safety
always comes first. We are confident
that by 2020, RKW will have outper-
formed the industry average in terms
of safety standards.
To support our safety goals, we have
initiated specific guidelines and activi-
ties. Those include establishing a net-
work of safety officers; a plan for re-
porting, analysis, and communication;
safety awards; behavior-based safety
programs and audits; employee safety
training; as well as 10 Golden Safety
Rules. This is a booklet with manda-
tory safety instructions that must be
adhered to by all RKW employees in
order to avoid work accidents.
Although it may seem to be a smaller
danger compared to accidents due to
energized systems or traffic, cutting
tools have been the cause of many
injuries at work. That is why they
have been awarded their own catego-
ry in the list of Golden Safety Rules.
Due to the number of incidents with
sharp blades, RKW has come up with
several safety recommendations and
procedures. In addition, we have re-
placed all individual cutting tools with
special safety knives that will reduce
the number of accidents.
3.6 Social Responsibility
3.6.1Safety
43RKW GROUP | SUSTAINABILITY REPORT 2018
The 10 Golden Safety Rules
1. HIGH-RISK SITUATIONS
2. ENERGIZED SYSTEMS
3. TRAFFIC: VEHICLES/PEDESTRIANS
4. CUTTING TOOLS
5. BODY MECHANICS AND TOOLS
6. PROTECTIVE EQUIPMENT
7. WORK PERMITS
8. LIFTING AND WORKING AT HEIGHT
9. CONFINED SPACES
10. MANAGEMENT OF CHANGE
44
WHEN EXCELLENCE MATTERS
3.6.1
19
10
6
0
10
20
30
2016 2017 2018
Lost-time accidents frequency rate/year
Reduction of accidents
Based on all our safety-related activities, we were again able to significantly reduce
our incident rate. In 2018, for the third consecutive year, we were able to outperform
our own ambitious goal and reduce accidents by another 40% compared to 2017.
By repeatedly asking “Why?”, one can peel away layers of symptoms and identify the root cause(s) of the problem. A root cause is an identified reason or source for the presence of a defect or problem. Once a root cause is identified and corrected, prevention of the recurrence is possible.
Benefit: Drives continuous improvement and stakeholder benefits by empowering the organization with simple problem-solving to eliminate numerous small problems.
Key Focus in 2018: the “5 WHY” methodology
Our aim as a company is to avoid any inju-
ries at our Sites. However, when an acci-
dent occurs, either with or without days
away from work, the local management
will assign a small team to analyze the
accident and understand the root caus-
es. Then we eliminate them through a
set of corrective and preventive counter-
measures. For this the team uses the
“5 WHY” methodology, which is a
simple yet powerful tool. So simple
that we have included a Group train-
ing program to empower a significant
part of our workforce, including line
operators and first line leaders, in the
root causes analysis. A few guidelines
drive the success of the analysis. It first
needs to be performed as quickly as
possible after the incident/accident,
the quicker the better, and with the
person involved or a direct witness to
collect all facts and evidence.
A very common shortcut that the anal-
ysis team must overcome is the willing-
ness to go directly to an already known
cause. For that we have set a number
of good practices to keep the analysis
team open-minded and looking at all
possible fields of cause.
Lorenzo Cavalli, Director Operational Excellence RKW Group
“I am very proud of the accomplishment made by the RKW Group with regards to safety. Thanks to a signif-icant mobilization of the entire organization, we were able to divide the number of accidents by a factor of five in the last four years. With that, RKW is now in the top quartile in our industry. Safety fits with our strong company value: Respect. As an employer, it is our ob-ligation to respect employees by ensuring safe work-places. The obligation of employees is to respect their equipment and safety instructions to avoid injury.”
The problem is… Why?Answer
Answer
Why? Answer
Answer
Root cause 1
Answer Root cause 2Why? Why?
45RKW GROUP | SUSTAINABILITY REPORT 2018
3.6.2
20%24% 26%
11%
10% 10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2016 2017 2018
Female managers Diversity
Corporate Social ResponsibilityRKW assumes responsibility for its employees in a manifold way, ranging from health and safety to training and development.
3.6.2
As described in chapter 3, the
RKW Group has a three-fold
approach to sustainabili-
ty. We are convinced that high eco-
nomic performance, environmental
protection, and social responsibility
are inseparably connected. Assum-
ing responsibility for our employees
includes working toward the better-
ment of their health, well-being, and
training and development.
One of our goals is to lead RKW with
a diverse and experienced senior man-
agement team, including an increased
share of female and international
managers. That is why we are pleased
to see our rate of female managers
rise to 26% between 2016 and 2018.
Within those years, we have main-
tained our diverse managerial level
members, which now consists of peo-
ple from ten different nations.
All employees are given training on
our Group-wide code of conduct,
compliance regulations, and work
safety, with supervision from our cor-
porate governance department. We
also follow the principle of equal pay,
and ensure that employees in equiv-
alent positions receive the same pay,
regardless of their origin or gender.
We do more than simply comply with
the legal requirements of occupation-
al health and safety regulations. One
of the core values of RKW is respect,
which stands for mutual regard and
support. Through our “Company
Health Management” program, we
strive to ensure that our employees
are physically and mentally fit. Thanks
to the efforts of an internal group, the
goals of this project have spread to all
Sites. This includes regular preventive
medical checkups, local health days,
influenza vaccination, as well as local
team-building measures such as inter-
nal workshops, corporate runs, and
much more.
RKW Management team: gender and diversity rate (RKW defines diverse senior management team as: consisting of ten different nationalities, thereof minimum three outside of Europe)
46
WHEN EXCELLENCE MATTERS
After a thorough analysis of needs
in 2014, the Group decided to place
emphasis on workload, working at-
mosphere, organization, development
opportunities, and general satisfac-
tion. Subsequently, a team was set up
at each Site to promote these issues
and to organize activities for their spe-
cific requirements. These range from
newly designed lounges and sport fa-
cilities to addiction prevention or the
promotion of healthy eating habits.
We foster personnel development of
our employees through various ini-
tiatives, for example our Leadership
Excellence program that includes ex-
ecutive trainings and management
evaluation. Furthermore, RKW sup-
ports part-time bachelor and master
studies, trainee programs, and other
continuing education measures. We
also develop measures to encourage
team building and sponsor work-
shops. This all follows our cultivation
of respect – we respect personal ca-
reer objectives. A good example of
how effective our efforts are can be
seen with the story of two employees.
Both started as RKW trainees, quickly
advanced to other positions in differ-
ent countries, and now hold General
Manager positions at our Sites.
Mari Valtonen, RKW FinlandAli Korkmaz, RKW Petersaurach Antony Taing, RKW Vietnam
Fit for RKW
The RKW Group offers many types of healthcare and fitness initiatives including influenza vaccinations,
ergonomic examinations, back checkups, support to quit smoking, or memberships in fitness studios.
Examples
RKW China: The Guangzhou factory organizes outdoor badminton matches once a week and has created
a multiple reading and fitness facility with bicycle ergometer.
RKW Echte, Germany: Cooperation with the local firefighting brigades, use of the factory
area as a training ground.
RKW Nordhorn, Germany: Food tasting and resulting conclusion to pay more for healthier and more
diversified food offered in the canteen.
47RKW GROUP | SUSTAINABILITY REPORT 2018
“As a leading manufacturer of film solutions, we have a responsibility to support a sustainable future.”
WHEN EXCELLENCE MATTERS
4.0
RKWInitiatives
Doa
a Sa
bry,
RK
W E
gypt
, Res
earc
h an
d D
evel
opm
ent
50
WHEN EXCELLENCE MATTERS
Plastic pellets polluting oceans and beaches
Plastic marine litter is one of the
world’s biggest environmental
issues. According to a 2015 ar-
ticle published in the scientific jour-
nal “Science,” between four and 12
million metric tons of plastic waste
makes its way into the oceans each
year. Although only a very small por-
tion of this volume consists of plastic
granulates, the RKW Group is work-
ing to raise awareness of the issue,
both at its own plants as well as with
suppliers and logistical partners across
the industry. We also take steps to en-
sure that our own pellets, powders,
and flakes do not end up in garbage
or sewage.
As a leading manufacturer of film
solutions, we have a responsibility to
support a sustainable future. We are
aware that, while pellets, i.e. plastic
granulates, are only a minor contribu-
tor to marine pollution, we must also
actively seek ways to reduce the loss
of plastic granulates into the environ-
ment during production, distribution,
storage, transport, and processing.
RKW has therefore joined the ranks
of numerous other companies and
implemented the “Zero Pellet Loss”
initiative in its plants. This has been
realized in cooperation with the two
associations, and, in particular, with
the German Association for Plastics
Packaging and Films (Industrieverein-
igung Kunststoffverpackungen e.V.,
IK). Actions to further reduce pellet
loss include audits (root cause search
for leaks), clearly legible signage
around the production Sites, disposal
points for cleaning pellet spillage, eas-
ily accessible cleaning tools, and the
measurement of pellet loss.
To counter the growing pollution of coastlines and oceans, the trade associations PlasticsEurope and the VCI have founded the “Zero Pellet Loss” initiative, which is part of the global project “Operation Clean Sweep®.” The aim of both organizations is to minimize the loss of pellets throughout the process chain. RKW has joined the ranks of numerous other companies and implemented the “Zero Pellet Loss” initiative in its plants.
4.0 RKW Initiatives
4.1Zero Pellet Loss
51RKW GROUP | SUSTAINABILITY REPORT 2018
Through the installation of sieves
on rainwater drains, RKW pre-
vents pellets from entering
the environment. This means less
leaks and spills. Dirty pellets are not
disposed of in regular trash but im-
mediately collected for recycling,
thus preventing possible downstream
pollutions.
Since the commitment of our employ-
ees is crucial, training and communica-
tion in the factories is key to success-
fully avoiding the leakage of pellets
into the ecosystem. Furthermore, we
have ongoing cleanup activities in our
factories. During these sessions, em-
ployees as well as the General Man-
ager and the management team
collect waste (such as
bottles, cans,
and plastic
film) from
the factory
premises. To further increase employ-
ee involvement, we also made zero
pellet loss a topic of our Strategy Rally,
an internal activity in which everyone
was able to participate. Employees
were asked to guess how many pellets
were in a glass and answer questions
about pellet loss and sustainability.
This action resulted in a heightened
awareness of the “Zero Pellet Loss”
initiative among our employees.
To join the “Zero Pellet Loss” initiative,
we first needed to carry out internal
audits at all of our plants. Points of
entry needed to be identified, for ex-
ample at filling silos or cleaning pipes.
We then initiated required measures
to eliminate these leaks and were
able to become certified through
the IK association. All RKW Sites are
“Zero Pellet Loss” certified, with ac-
tivities continuously taking place. We
regularly monitor these measures and
continually optimize them.
“Zero Pellet Loss” info table at an RKW factory.Regulations for truck drivers to avoid pellet loss during unloading of trucks in eight different languages
52
WHEN EXCELLENCE MATTERS
194,532 198,182 194,710
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
2016 2017 2018
4.2
Investments in Carbon Footprint ReductionAs stated in our business mission, RKW is committed to developing sustainable actions that make wise use of our planet’s valuable resources.
4.2
Our goal is to reduce the car-
bon footprint of our prod-
ucts and production pro-
cesses. Evaluating our use of energy
will help us to reduce CO2 emissions,
as both are closely connected.
The World Resources Institute (WRI)
and the World Business Council for
Sustainable Development (WBCSD)
have developed the Greenhouse
Gas Protocol. This is an initiative that
provides businesses and other or-
ganizations with standards against
which they can measure and take
steps to balance their greenhouse gas
emissions.
At present, the RKW Group does not
possess sufficiently detailed data to
be able to accurately calculate all ac-
tivities. However, we can estimate the
effects of so-called “scope 1” (direct)
and “scope 2” (indirect) emissions. The
factors required to convert the use of
resources into emissions are taken from
the GEMIS database of IINAS GmbH
(International Institute for Sustainabili-
ty Analyses and Strategies, Darmstadt).
All RKW Sites worldwide are measured
using the same conversion factors.
With the uncertainties present in
“use by customers” and “disposal/
recycling” values, we are only able to
influence a small part (approximately
10%) of the calculated total product
emissions. Nevertheless, the RKW
Group has set the goal of reducing
greenhouse gas emissions within its
area of responsibility.
We are doing this in several ways.
First, we promote the development of
more sustainable products with lower
environmental impact (see also Sec-
tion 3.5.3). For example, because raw
materials generate the largest share of
total CO2 in typical extrusion products,
we strive to save material by down-
gauging. Over the past years, we have
significantly reduced the thickness of
CO2 footprint These CO2 equivalents of approximately 190,000 metric tons per annum correspond to the emissions for which we are directly responsible. Upstream or downstream emissions resulting from the use of raw materials or from thermal recycling are not included.
53RKW GROUP | SUSTAINABILITY REPORT 2018
several of our products, such as those
of backsheets or shrink films. Down-
gauging reduces storage space, CO2
emissions due to transportation, and
energy consumption.
In addition, since 2017 we have ini-
tiated several programs aimed at re-
ducing CO2 emissions at our Sites.
This includes our evaluation of the
entire life cycle of products to mea-
sure their impact on the environment
due to factors such as CO2 emissions.
Each phase is considered, from raw
material, manufacturing, packaging,
distribution and implementation, to
disposal.
Supplementary to the efficiency mea-
sures of the plants, special projects
have been financed with an annual
budget of EUR 200,000. These have
undergone an evaluation procedure
that includes CO2 reduction as the
most important criterion. In 2018,
projects focused on illumination sys-
tems and insulation. Equipping several
locations with the latest LED technol-
ogy and improving the insulation of
heat- intensive production processes
resulted in savings of more than 900
metric tons of CO2 emissions per year.
At RKW, we invest in projects that
combine efficiency with sustainability
and have the least impact on the envi-
ronment – all with the aim of continu-
ing along the path of CO2 reduction.
ExampleLife cycle calculation
This is a calculation of the life cycle of
a nonwoven RKW product, showing
values for its different “life phases.”
This ranges from the provision of raw
materials and manufacture to the
downstream stages of transport, use,
and disposal.
4.2
4.02 0.86 0.06 3.91
0 2 4 6 8 10
CO2 equivalents (kg/kg)
Raw materials Production
Transport Customer usage
Disposal/recycling
Neu12.03.2019
Nonwoven: CO2 footprint
54
WHEN EXCELLENCE MATTERS
ExampleNetworking and best practice
RKW SE is one of the cofounders of
the IK Energy Efficiency Network in
Germany in order to work towards
the goal of a direct or indirect reduc-
tion in CO2 equivalent emissions from
our plants.
In 2017, 18 companies in the plastics
industry joined forces and are work-
ing towards the goal of saving a total
of 22,000 MWh by 2020, which cor-
responds to a CO2 equivalent of more
than 7,000 metric tons per year.
Since 2017, the participants have met
three times a year to exchange ex-
periences on the subject of energy
efficiency.
More information on the IK Energy
Efficiency Network can be found at
www.kunststoffverpackungen.de
ExampleChange of energy source
At the Halberstadt Site, the energy
supply for a drying oven was convert-
ed from electricity to gas in 2018. This
not only had financial advantages, but
an important criterion for us was the
use of a low-emissions energy source.
Here, an investment of more than
EUR 80,000 resulted in a saving of
more than 400 metric tons of carbon
dioxide equivalents per year.
55RKW GROUP | SUSTAINABILITY REPORT 2018
RKW Sustainability Award 4.3
RKW has regularly conducted internal sustainability contests between its locations since 2012. The RKW Sustainability Award goes to the Site that has demonstrated the most significant improvement over the previous three years.
RKW is convinced that econom-
ic success and sustainability go
hand in hand, and that environ-
mental protection does not constrain
financial achievement. That is one
reason why the company has held in-
ternal sustainability contests between
its locations since 2012. The RKW Sus-
tainability Award goes to the Site that
has demonstrated the most significant
improvement over the previous three
years. With this distinction, RKW en-
courages all Sites to strive toward con-
tinual betterment in the sustainability
domain.
The Sites are evaluated in the areas of
economy, ecology, and social respon-
sibility, factors that are consistent with
the strategic goals of RKW. Specific
criteria for the evaluation are known
by the Sites in advance. They include
KPIs covering health and safety, lead-
ership, customer satisfaction, business
growth, material and energy efficien-
cy, order and cleanliness, recycling
quotas, and CO2 emissions. The as-
sessment takes into account develop-
ment in the current year compared to
the two previous years. This motivates
Sites that have already been positively
evaluated to continually improve their
performance.
RKW Board Members personally pres-
ent the award to the General Manag-
er of the winning Site during a compa-
ny-wide meeting. The prize includes a
certificate as well as funding to carry
out a project that will further improve
sustainability at that Site. In 2018, the
Site in Finland won the award after
reaching the highest total score. The
Site showed significant progress in the
reduction of production waste and
customer claims as well as an increase
in profitability, the use of recycled
materials, and positive evaluation of
leadership.
For the highest and continuous
improvement in sustainable topics 2018
RKW FINLAND RKW Finland
P.O. Box 22, Ulasoorintie 185
28600 Pori | Finland
Executive Management Board
Harald Biederbick Reinhold Franke
Seeheim-Jugenheim | Germany | July 24, 2019
RKW SUSTAINABILITY AWARD 2018
– 1ST PLACE –
56
WHEN EXCELLENCE MATTERS
Membership in Organizations and Associations
4.4
t
EDANA Sustainability Forum and Circular Economy Working Group
BKV – Plastics, Recycling Concepts
Agriculture Plastic & Environment (APE Europe)
ERDE Recycling
Flexible Packaging Europe Sustainability Committee
IK-Energieeffizienznetzwerk
IK Industrievereinigung Kunststoffverpackungen e.V.,
Working Group Environment & Sustainability and Working Group Bioplastics
“Zero Pellet Loss” Initiative
Irish Farm Film Producers Group (IFFPG)
CEFLEX Consortium
57RKW GROUP | SUSTAINABILITY REPORT 2018
Tayy
ab A
hmad
, RK
W N
ordh
orn,
Con
trol
ling
58
WHEN EXCELLENCE MATTERS
G4 General Standard Disclosures Overview
GRI Standard Page External Auditing
Strategy and Analysis
G4-1 5–6, 10 –
Organization Profile
G4-3 9 –
G4-4 13, 28 –
G4-5 9 –
G4-6 15 –
G4-7 11 –
G4-8 13 –
G4-9 11–12, 14–15, 37 –
G4-10 38 –
G4-11 20 –
G4-15 20–21 –
G4-16 57 –
Identified Material Aspects and Boundaries
G4-17 11, 39 –
Governance
G4-34 11 –
Ethics and Integrity
G4-56 20, 21, 40 –
5.0 GRI Reference
59RKW GROUP | SUSTAINABILITY REPORT 2018
GRI Standard Page External Auditing
Aspect: Materials
G4-EN1 30, 32, 39 –
Aspect: Energy
G4-EN3 23–25 –
Aspect: Water
G4-EN8 26–27 –
Aspect: Emissions
G4-EN18 53–55 –
Environmental Category
G4-EN28 35, 51–56 –
Aspect: Occupational Health and Safety
G4-LA6 43–45 –
60
WHEN EXCELLENCE MATTERS
61RKW GROUP | SUSTAINABILITY REPORT 2018
rkw-group.com
The RKW Group is an independent, privatley owned
company and one of the world’s foremost manufacturers
of excellent film solutions. RKW is the market leader in
the areas of hygiene and agricultural films, films for the
beverage industry, and packaging for powdery goods.
In addition, the company makes films and nonwovens
for medical applications, for the chemical and converting
industries, as well as for the construction sector.
In fiscal year 2018, RKW generated total sales of
EUR 878 million. About 3,000 employees process
367,000 metric tons of plastic materials at 20 locations
around the world.
RKW SE HeadquartersNachtweideweg 1–7 | 67227 Frankenthal | Germany
T +49-(0) 62 33-87 09-0 | F +49-(0) 62 33-87 09-177
Sustainability Report 2018
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